Income tax on gold jewelery in India Gold is a capital asset and capital gains tax is levied on the profit earned on its sale. If someone wants to earn profit by selling gold bought in the name of his wife, then the income from that person will be considered as income and capital gain tax will be levied.
Taxation of Gold purchased in wife’s name: Investing in gold is considered very good in India. For this, people adopt many methods. Buying gold in the name of your wife is a very popular option, but the question arises whether you can also save tax through this.
Will buying gold in wife’s name save tax?
For this it is important for you to understand the tax rules. You cannot save any tax on buying gold. Gold is a capital asset. For this reason, capital gains tax is levied on selling gold.How tax is applicable on selling gold taken in the name of wife
CA Abhinat Singh, Founder, Ready Accountant, says that according to the Income Tax Act, gold is considered a capital asset and hence capital gains tax will be levied on selling gold.
As per the Income Tax Act, whenever a person buys gold in the name of any of his dependents, the sale proceeds will be added to that person’s income.
In such a situation, if a person saves gold jewelery purchased in the name of his wife from his income, then the income from it will be added to the total income of that person and capital gains tax will be levied.
Where does one invest to save tax?
If you want to invest only to reduce your tax burden then you can invest in small savings schemes of post office like Public Provident Fund, National Saving Certificate, Kisan Vikas Patra, Tax Saving Mutual Fund, Tax Saving FD etc. .
